Skip to main content

Fannie Mae Predicts Strong Economy Into 2018

Phil Hall
Mar 19, 2018
Fannie Mae is predicting a robust economic growth for this year, despite a projected slowdown during the first quarter

Fannie Mae is predicting a robust economic growth for this year, despite a projected slowdown during the first quarter.
 
According to the Fannie Mae Economic and Strategic Research (ESR) Group’s March 2018 Economic and Housing Outlook, the full-year 2018 forecast of real GDP growth by one-tenth to 2.8 percent, while the full-year 2019 forecast by two-tenths to 2.5 percent. Fannie Mae also downgraded its first quarter forecast from 2.7 percent to 2.2 percent, blaming the drop on slowdowns in housing activity and business investment plus what it described as “lackluster consumer spending.”
 
Looking forward, the ESR Group raised potential red flags—most notably, “including the potential for aggressive monetary tightening from the Fed and a further escalation of trade tensions following the recent tariffs placed on steel and aluminum imports”—and it also predicted a rate hike will occur during this week’s meeting of the central bank’s Federal Open Market Committee meeting, with two more rate hikes later in the year.
 
“We’re nearly a quarter of the way through 2018 and, as anticipated, the interplay between fiscal and monetary policy continues to frame the economic landscape,” said Fannie Mae Chief Economist Doug Duncan. “While we expect the economy to shift temporarily into a lower gear in the first quarter, the pace of growth should accelerate through the remainder of this year and into the next. Beyond the obvious downside risks, the economy appears poised to build on a foundation of strong consumer spending and a historically healthy labor market following the recent passage of the discretionary spending bill on top of tax reform.”
 
On the housing front, Duncan added that “home sales got off to a rough start in 2018, bottle-necked by the persistent challenges of the inventory shortage.” Nonetheless, he insisted that “strong home price appreciation continues to come as welcome news to existing homeowners.”

 
Published
Mar 19, 2018
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021